Solution-Determine the contribution per unit for vita-joy

Determine the contribution per unit for vita-joy

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Reference no: EM132655783

Problem 1: You are the product manager for Vita-Joy, a consumer product with a retail price of $1.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. Using the indicated supply chain, fill in the yellow boxes with dollar amounts. (Hint: Variable costs at one link of the chain become the price at a previous link in the chain.) Variable manufacturing costs for Vita-Joy are $0.09 per unit. Fixed manufacturing costs are $900,000. The advertising budget for Vita-Joy is $500,000. Your salary and expenses total $35,000. Salespeople are paid entirely by a 10% commission. Shipping costs, breakage, insurance, and so forth are $0.02 per unit. Now answer the following: By filling in the yellow and green boxes, determine the contribution per unit for Vita-Joy. What is Vita-Joy's breakeven point?

Reference no: EM132655783

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Determine the contribution per unit for vita-joy

Reference no: EM132655783

Reference no: EM132655783

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